Adobe stock has been in consolidation since the beginning of 2023, ranging between $320 and $386.50. Adobe’s price formed a high of 402.49 level, which was not sustainable by price and triggered a drop in the price.
The correction caused a downfall of approximately 20%, forming a low at the $320 level. The price again tried to retest the high but could not cross $386. Bears do not want the price to rise above $400, and as soon as the price reaches nearly $400, there is a massive sell-off by the investors.
If bears can push the prices below the recent support, the price might fall to the $324 level. On the other hand, if bulls can gain strength and push the prices above the $360 level, ADBE’s price can retest the highs of $386.50.
Adobe Inc. Quarterly Report Released
The Quarterly Report of Adobe was released on March 15, which showed that the revenue has increased from $4.45 Billion in the last Quarter to $4.64 Billion in the Quarter 1 of 2023. This majorly caused the net income to grow from $1.18 Billion to $1.25 Billion.
The cash flow from the operation was $1.69 Billion. The release of the quarterly report caused a bullish rally in the price generating a return of +5.90% on March 16.
Adobe also repurchased almost 5 million shares during this Quarter, which shows that the company hold a positive outlook for the price. Institutional investors have approximately 83.8% and can easily influence the price. The top 25 shareholders own 44.57%, which consist of The Vanguard Group Inc and Black Rock Group Inc, holding 8.59% and 8.03%, respectively. The Director of Adobe, John E. Warnock, recently sold 3000 shares on April 26.
What Do Technicals Say About ADBE price?
Chaikin Money Flow score is -0.21, indicating intense weakness and selling momentum in the market. ADBE price is trading below all the significant EMAs – 20,50,100, and 200-day EMA, indicating bearish momentum, and the price needs to cross above the 200-day EMA for a trend shift.
If consolidation persists, RSI has almost reached the oversold zone, and ADBE price might witness a rally to the supply zone. The bands of Bollinger have opened up, indicating an increase in volatility, and the price is residing near the lower band. There are no signs of bullishness, and the price is on the verge of a breakout.
Conclusion:
The price action and market structure show that the price is stuck in a consolidation zone and is currently headed towards the demand region. The technical parameters suggest that ADBE’s price is in strong bearish momentum and might break the recent support to fall even further.
Technical levels:
Major support: $324 and $290
Major resistance: $350 and $361
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/14/adobe-stock-price-prediction-adbe-price-headed-towards-324-level/